Insurance Provider in Legal Trouble: Bombay HC Demands Answers Over Alleged Unauthorized Legal Assistance to Doctors

The Bombay High Court recently took notice of a Public Interest Litigation (PIL) that accused Apex Insurance Consultant Ltd., an insurance provider, of engaging in unauthorized practice of law.

According to the petition, the company was offering to handle all litigation for doctors who take its membership, and was operating like a law firm without any registration with the Bar Council of India or any State Bar Council.

The division bench of Acting Chief Justice Nitin Jamdar and Justice Arif S Doctor sought the response of the company after Bar Council of India (BCI) and Bar Council of Maharashtra and Goa (BCMG) concurred with the petitioner’s contentions.

The court said, “The learned counsel for Bar Council of India and the Bar Council of Maharashtra and Goa state that the contention raised by the Petitioner that the activities carried out by Respondent No. 1 are in contravention of the Advocates Act, 1961 and the Rules framed thereunder, is correct. Issue notice to Respondent No. 1, returnable on 2 August 2023.”

The petition, filed by Nilesh Khandale, a practicing advocate, contended that the insurance company was violating the fundamental rights of advocates under Article 21 and Article 19(1)(g) of the Constitution. 

It also sought an injunction restraining Apex Insurance from continuing its activities and directions to BCI and BCMG to initiate proceedings against the directors of the company.

BCMG in its reply affidavit stated that Apex Insurance was profiteering from the legal profession without being registered as an advocate or law firm. It also said that the company was violating various Rules of the BCI, including those related to keeping accounts, sharing remuneration with non-advocates, acting on instructions from unauthorized persons, and facilitating the unauthorized practice of law. 

BCMG sought directions to Apex Insurance to provide full disclosure of the nature of its activities and details of remuneration it receives from the doctors/hospitals and the system of legal fees paid by it to its empaneled advocates.

This petition filed through Advocate Vaibhav Kulkarni also seeks an inquiry into other companies operating similarly and raising awareness among lawyers and the public. 

The case is a reminder of the importance of ensuring that all legal services are provided by qualified professionals and that companies do not engage in activities that are beyond their scope.

In a recent development, the Bombay High Court has taken serious note of allegations made in a Public Interest Litigation (PIL) against Apex Insurance Consultant Ltd., an insurance provider accused of unauthorized practice of law. The court, after considering the petitioner's contentions and receiving concurring opinions from the Bar Council of India and the Bar Council of Maharashtra and Goa, issued notice to the company and scheduled a hearing for August 2, 2023. The allegations suggest that Apex Insurance was functioning as a law firm without the necessary registration and offering litigation services to doctors who became its members. This case raises important concerns about the unauthorized practice of law and the potential violation of fundamental rights of advocates. The court's decision to take notice of the matter highlights the significance of regulating legal services and ensuring that individuals and entities engaging in legal practice meet the necessary qualifications and adhere to the prescribed rules and regulations. This case serves as a reminder of the importance of upholding the integrity of the legal profession and protecting the rights of both advocates and clients.(alert-success)